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C & A Punalu'u, LLC <br /> Financial Plan as of July 13, 2020 <br /> Punalu'u Water and Sanitation LLC Pro Forma <br /> 3 Year Operating Projections <br /> Year 1 Year 2 Year 3 <br /> Revenue <br /> Revenue Water Sates $36,000.00 $36,000.00 $45,000.00 <br /> Total Revenue $36,000.00 $36,000.00 $45,000.00 <br /> Expenses <br /> Insurance $800.00 $800.00 $800.00 <br /> Third Party Consultant-Aqua Engineering $86,199.00 $87,923.00 $89,681.00 <br /> Repair $7,000.00 $7,210.00 $7,426.00 <br /> Utilities S61,000.00 $61,610.00 $67,771.DO <br /> PUC Fees&Taxes $1,600.00 $1,600.00 $2,000.00 <br /> Professional Service Fee $1,500.00 $1,500.00 $1,500.00 <br /> Total Expenses $158,099.00 $160,643.00 $169,178.00 <br /> Project Net Income ($122,099.00) ($124,643.00) ($124,178.00) <br /> Capital improvement <br /> Facility Improvement $20,000.00 $30,000.00 $70,000.00 <br /> Project Net Cash Flow ($142,099.00) ($154,643.00) ($194,178.00) <br /> Assumptions: <br /> 1.No new customer accounts are opened in 3 years <br /> 2.No rate increase in 3 years <br /> 3.No significant usage increase for electricity <br /> 4.Capital improvement is budgeted base on the company's best estimation and is subject to change. <br /> 2. Fund Source <br /> PWS is unable to generate enough revenue to support its daily operations under current <br /> water consumption revenue unless new or additional revenue sources are developed. <br /> Over a relatively long period, PWS will greatly depend on its C & A Punalu'u's financial <br /> contributions as its main source of funds. C & A Punalu'u has reserved $520,000, which <br /> includes a $120,000 credit that C&A Punalu'u saved from the land acquisition from Seller, <br /> to contribute to PWS over the initial three years. These funds will help to support PWS' <br /> operations and help PWS to provide services to its existing customers until such time a <br /> rate increase becomes necessary. <br /> Sources and Usages of Cash <br /> Sources of Cash Usages of Cash <br /> Year 1 Year 2 Year 3 Total Year 1 Year 2 Year3 Total <br /> Revenue from Operation $36,000.DO $36,OD0.OD $45,ODD.00 $117,000.00 Operating Cost $158,D99.D0 $160,643.00 $169,179.00 $487,920.OD <br /> Owner's Contribution Capital Improvement $20,DN.DD $30,ODD.00 $70,000.00 $120,ODD.DD <br /> Additional Cash $130,D00.00 $130,000.00 $140,ODD.OD $400,000.00 Fund Reserved $7,901.D0 $5,357.00 $15,822.00 $29,080.DD <br /> Money Saved from guy's credits $20,000.DO $30,D00.DD $70,ODD.00 $120,000.00 <br /> Total $186,000.00$196,000.00$255,000.00$637,000.00 Total $186,000.00 $196,000.00 $255,000.00 $637,000.00 <br /> Exhibit B <br /> Page 2 of 4 <br />